Masoom Modh

Neha Dhavalikar JIO Infocomm Ltd

Mohit Yadav
Kanika Gupta
Krishanu Kundu
Maulik Chaudhary
 Objectives of the presentation

 Communication of JIO

 Communication of Competitors
 Analyze the Distribution Network of JIO Infocomm Ltd
 Distribution Network of Competitors
 Market Analysis ( Analysis of Survey)
 Suggestions for JIO
 What lies Ahead for JIO
 Questions & Comments Session
 General Overview

 Industry forecast

 Established in 2016
 User base of 130 Million within 1 years
 Wholly owned of Reliance Ltd
 Overall Market Share of 13.9%
 Current ARPU of 156.40 per month
 Communication Channels of JIO

 Celebrity Endorsement

 Hoardings
 Print advertisements
 Television advertisements
 Word of mouth
 Roadside stalls
 Communication Strategies of JIO

 Promotional offers - ‘JIO Preview Offer’, ‘JIO Welcome Offer’ etc.
 Low tariff plans – free calls
 Easy procurement of connections
 Event sponsorships
 Partnerships with Apple and Amazon
 Smart phone devices – Reliance LYF
 Communication Channels of Vodafone

 Television advertisements – ZooZoos
 Celebrity endorsement
 Print Media
 Event sponsors – IPL2
 Cricket Team sponsors
 Hoardings, Billboards
 Internet
 Merchandising
 Communication Channels of Airtel
 ADVERTISING
• Broadcast Media - Television Ads -
Sab kuch milega, Sabko milega, Har
ek friend zaruri hota hai
• Display Media – Billboards, Posters
• No Celebrity endorsements

 Sales Promotion – Airtel Prepaid
Promise @ Rs448
 Events and Experiences - ADHM
 Public relations
 Mobile Marketing
 Direct and Database Marketing
 Online and Social Media Marketing
 Communication Channels of Idea

 Television advertisements

 Celebrity endorsements
 Print Media
 Event Sponsors – 54th Filmfare Awards
 Hoardings
 Social Media Advertising
 A Comparison – Social Media

AIRTEL RELIANCE JIO
• Facebook (9.8m likes) • Facebook (2.2m likes)
• Twitter (2.31m followers) • Twitter (301k followers)
• Instagram (101k followers) • Instagram (142k followers)

Vodafone
• Facebook (1.4m likes)
• Twitter (694k followers)
• Instagram (92.9k followers)
Distribution Network of JIO Infocomm Ltd

 Total Three level Distribution


Network One Level
 One Level Distribution
 Two Level Distribution
 Three Level Distribution
Two Level

Three Level
 One Level Distribution

 Types of JIO’s One Level Distribution
 Home Delivery
Company  Authorized JIO Outlets
 Promotional Stalls

JIO’s FSE

Consumer
 Two Level Distribution

 Types Two Level Distribution
Company  Reliance Digital
 Reliance Xpress
JIO’s FSE  Reliance Xpress MINI

Retailers

Consumer
 Three Level Distribution

 Types of three Level Distribution
Company  Local Kiraana Shops
 Small Local Retails Outlets
FSE’s  Mobile Phone and Accessories Shops

Distributor

Retailers

Consumers
 Airtel Distribution Network

 Leading Telecom Company in India


Urban Trade Urban Direct Trade Local Trade
 Market Share of 29.80%
 2017 ARPU dropped by 2% to 145 from 188
 Margin to the distributor-2% Rural
 Retailers 2.5% per recharge Distributor
 Acquired Telenor in 2017 Distributor
Company
 Distribution Network
 Urban Territory Rural FSEs
FSEs
 Rural Territory FSE
 Types of Channel Distribution
 Airtel Authorised Outlets Retailers Rural
 Recharge only shops Consumer Retailers
 Recharge and Sim providers
 Mobile phone and accessories shops Customers
 Kiraana Shops Customers
 Stationery shops
 Pan Shops
 Road Side stalls
 Vodafone Distribution

 Started operations in 2007

 Indirect Channel
 Second Largest in telecom Industry Tier 1 (Urban)
 Current ARPU - 140
 Most Comprehensive Distribution
 9800 Retail Stores Vodafone
 Market Share of 17.68%
 Merger with Idea Cellular
Distributor
 Margin to the distributor-1.75%
 Margin to the retailer-2.5%
 New Market Share of with 33.88% Retailer
 Types of Vodafone Channel
 Indirect Channel
 Exclusive Retail Customer
 Direct Channel
 Modern Trade
 B2B Business
 Vodafone Distribution
Indirect Channel  Direct Channel
Tier 2 (Rural)
Exclusive Retail
Direct Sales
Vodafone Store
Vodafone Mini
store Urban &
Vodafone Mini Agent
Store Rural
Semi Urban

Service Low Cost

Pop up Tele Calling
Advantage Recharge

Entrepreneu
Smartphone
r Run Model Super-Call Centre
Homes
 IDEA Distribution
 Direct Channel Indirect Channel
 Third leader in telecom Industry Tier1 (Metropolitan) Rural

 Aditya Birla Group owned

Idea
 Covers 76% of all India
population Idea Store
Distributor
 Market Share of 16.20%
customer Retailer

Customer
 TATA DoCoMo Distribution

 Eighth leader in telecom Industry

 Direct Channel
Indirect Channel
Rural
 Tata Group owned
 Market Share of 3.81% DoCoMo
DoCoMo
 Post-paid Detailed Channel Store
 DTA Distributor
 DST
FSE
 Modern Trade
Retailer
 Exclusive Hubs
 Prepaid Channel customer
 Retailers Customer

 Modern Trade
 Exclusive Hubs
 Jio’s Market Analysis

 Total Number of people surveyed: 99
 Total Number of people using secondary connection :66(66.67%)
 Total number of people using Jio’ service : 51 Jio users
Single connection Market share Primary
market connection
secondary
connection
47% 53%
15% Jio
12% 9% Jio 31%
Vodafone
Vodafone
29% Airtel
36% Airtel
43% 25% Others
Others
 Major findings of the survey:

 People use Jio’s service as mostly a secondary connection.
 The time when the services are consumed the most is from 6.00 pm to 6.00 am.
 Even after the launch of Jio People haven’t changed their prior connection, rather
they have acquired it as a secondary connection (Proved by Hypothesis Testing Below)
 Almost all the people surveyed prefer a bundled plan (i.e. plans like Rs.399,Rs 349
etc.)
 Network which was being used by the people prior to the launch of jio, is still being
used as a second connection.
Few Survey Results

 Positioning Map


BSNL

tata

Coverage in remote places

I (55.3%) Connecting time Airtel
Voda
Data Speed
Connectivity
Voice clarit
Jio

Connectivity idea
Rel
Voice Clarity Fewer call drops
Roaming charges
Data speed
Connecting Time Cost Cost Schemes, like night plans etc Cheaper international calls
Coverage Roaming Charges
(Better Leftward) Call Drops Schemes

II (32%)
Cheaper Intl calls
( Better downward)
Factor Affecting consumer preferences

 Hypothesis Testing

p̂ : sample proportion of people who have changed their service provider to Jio.

Null Hypothesis H0 : Majority of people have not changed their service provider to Jio.
Alternative Hypothesis Ha : Majority of people have changed their service provider to Jio.

H0 : p<=0.5
Ha : p>0.5

Decision Rule : Reject null if Z > Zα, n-1

Do not reject if otherwise.
 Hypothesis Testing

n = 95, p0 = 0.5, p̂ : 0.211, α = 0.05
 SD = √(0.5x0.5/95)
 SD = 0.05129892

z = (p̂ - p0)/ SD
z = (0.211-0.5)/√(0.5x0.5/95)
z = -5.6346 > 1.645

So Ho is rejected.
Hence we can say that majority of people did not change their service provider to Jio after launching of Jio.
 What Went Right

 Acquired customers via free services
 Pricing of Plans
 Consumer Retention
 Proper Communication in Urban Areas
 Equipped for future as it is a 5G ready network
 Consumer mindset “wireless services are inflationary by default” changed
 What Went Wrong

 Calls Drops still persistent RURAL MARKET SHARE
 Call Connecting time Other
25%
Airtel
28%
 Cannibalized Local Retail Segment (Post SIM Purchase)
 Rural Subscriber base only 5.72% JIO
1%
 Breach of Consumer Data hurting the Brand
 Customer care issues Idea
22% Vodafone
 Voice clarity issues 24%

Source: Business Standard

 Recommendations

 Focus more on Local Retails segment

 Circle-wise: Number of Subscribers as of July 2017 (in
millions)
 Better Promotional Plan 50.00
45.28 43.87
45.00
 Improve Brand Recognition in Rural Areas 40.00
35.02 36.33

 Focus on Rural People 35.00

30.00 28.28
26.76 25.89

25.30
Improvement in Customer care services 25.00 21.95 23.00

 Change bandwidth when consumers are Indoors 20.00

15.00
17.50 16.17
12.39
11.67
11.31
 Disruptive Block chain Technology 10.00
9.15
5.755.62
4.17
 Capitalize on POP UP coupons plans for rural 5.00
-
2.401.15 1.96
-

Populations

Delhi
Mumbai
Chennai
Kolkata
Maharashtra
Gujarat
A.P.
Karnatka
T.N.
Kerala
Punjab
Haryana
U.P.(W)
U.P.(E)
Rajasthan
M.P.
W.B. & A & N
H.P.
Bihar
Orissa
Assam
N.E.
J&K
 Introduce cheaper plans with better Benefits for
Rural Populations
 Should focus on Stability, Speed and Security
 Should focus on becoming primary service
provider
 What lies ahead for JIO

 Trials of Fibre to the Home


 Face stiff competition because of Mergers
 Increase in ARPU
 Should focus on giving back to investors
 Launch 5G before any competitors do
 Key Takeaways

Effective Communication Important for any company
Due Importance to Rural Areas
Right product can inflict fear in competitors

Think for Consumers, Profit will surely follow.

Questions & Comments
